what is EBITDA?

[boutha priya]

Earnings Before Interest, Taxes, Depreciation and Amortization. An approximate measure of a company’s operating cash flow based on data from the company’s income statement. Calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, and amortization.

The formula is:   EBITDA = Revenue – Expenses (excluding interest, taxes, depreciation and amortization)

[Vishnu varadhan]

• A measure of company’s ability to produce income on its operations in a given year.
• It is calculated as the company’s revenue less most of its expenses but not subtracting its tax liability,interest paid on debt or depreciation.

[Jayalakshmi. j]

Earning before interest, taxes,depreciation and amortions is an indicator of a company financial performance which is calculated in the following manner:

EBITDA=revenue-expenses.

[Nivedha Kannan]

Earnings before Interest, Taxes, Depreciation and amortization is an indicator of company’s financial performance which is calculated by Revenue-Expenses.

It is used to compare the profitability between companies.

[Hemapriya]

EBITDA is a measure of company’s operating performance.

Its a way to evaluate a company’s performance without having to factor in financing decision, accounting decisions or tax environment.

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